BiggerPockets

Hey guys,

Ok first off I've been going through the forums here and there is a ton of information, but I haven't found anything related to my MAIN concern! If there is, I apologize!

Ok, now here's my question. I'm a newbie investor, but I'm a little farther down the line regarding the education and strategies that Im considering. I've actually read a ton here, and I've heard and read some courses on Subject-2 that I'm looking to start off wholesaling initially! But I have what you guys probably know as... information overload!! So to summarize here is what all I know...

- Subject2... What its all about, etc

- I've gotten the homestudy course of a 'guru' whose 'fast money strategy' (wholesaling) I'm planning on using... (you guys probably already knw which 'guru' im talking about!)

- This course has all the documents I'd need to use, and I've heard and read a ton about actually going and talking to a seller, etc so I'm not paralyzed there... (yet :-P )

So my main question is, to actually get off the ground what in the world do I really need to do and in what order....

1. Build my team? I have a name of a RE Attorn. in the detroit area but I havent spoken to him regarding Subj2. Should I do this first? What about RE agents and morgage brokers?

2. The guru says marketing to attract seller.... 3 ways...

- internet marketing ( from what I've heard... [LINK REMOVED]... costs a freaking TON!)
- direct mail ( I'd need to buy a list to get started right.. is the money worth it in the beginning? )
- business cards to ppl (relatively straight forward but not gonna get me deals to actually look at immediately!)


3. A REI website... Do I start this as my first step? before marketing? DO u really need one of those 24 hour 800 numbers too?

4. Should I directly approach Re agents and morgage brokers about potentially sending me deals? Remember, I haven't started yet so there is no name to really work off of.

Just to be clear, I'm not averse to actually investing money here to start off, but Id just like some guidance regarding what exactly and how to start off?! Does internet marketing really work? If so then I could get myself a website and use an internet marketing company like [LINK REMOVED]
I just dont want to invest over 500 bucks in something and have potentially NOTHING!

Let me know what you guys think. For someone who has his strategy and information down, now what?!

Sorry for the insanely long post... :-)

Regards,
Nadirsh.
Detroit!

Nardish, You'll probably get more replies if you ask some specific questions. Most of these topics have been discussed at length.

Subject to. Buying a property subject to the existing mortgage. In other words, you do not pay off the mortgage, just start making the payments.

Gurus: Generally, we think they give you little value for the money.

Building a team: not the most essential task. Focus on finding a deal.

Web sites that feed you leads: Unlikely to be worth the money. Get out their and find your own leads.

Lead generation: Discussed at length with lots of ideas for doing this. Different folks have luck with different techniques.

Detriot: Tough area. Lots of really cheap property, but declining jobs and population. Some folks say they're having good luck there.

I'm not a wholesaler, so I'm not the best one to tell you how to find deals. Read in the wholesaling forum. Lots of ideas have been floated, like direct mail, door knocking, bandit signs, working probate lists, out of area owner, calling for-rent signs, code violation lists, fire damage lists, etc.

If I could find subject to deals, I wouldn't wholesale them. If the numbers worked, those would be keepers.

I have always employed the KISS method. As in Keep it Simple Sweetie! Start out 1 step at a time build the busines before you outlay capital.
Go to Craisglist and look in the RE section for leads they are free, networking is also free. Go to open houses, ask REO realtors to put you on thier email list if they have one. You don't need a webpage at first and even if you do want one there are companies like WebStarts that will give it to you free. And you don't need a 800# either. Most people like a local number makes them feel all warm and fuzzy to talk to someone close.

So, when people talk about getting started and building a "power team" they often mean finding agents, a CPA, contractors, a lawyer, and who knows what else. How many times has someone posted exactly that question here? My advice is find the people you need as you need them. Focus on finding a deal. If you're going to wholesale, you need sellers and buyers. Without those, having a lawyer, a CPA, and anyone else on your "power team" isn't going to make you a penny. Find them as you need them, try to find the best you can, and be prepared to fire them if you aren't happy.

Finding an investor who's working the same sort of deals and asking or paying for their contracts will be cheaper, most likely, than hiring a lawyer to draft a bunch of agreements. Find a lawyer who will work with you, especially if closings are done by lawyers. If not, find a title company who will do your deals.

I don't mean these people aren't necessary. I do mean the focus must be on putting together deals. Some years back, before I had bought a property, at one of our CAREI meetings, Bronchick gave the advice "don't worry about creating LLCs and making web sites. Get out there and make offers. Nothing matters as much as making offers."

If you're trying to flip REOs, you do indeed need to find REO agents or at least an agent in order to make those offers. If that's the approach, you have to find those guys. But that's not what the OP is talking about doing, I think.

Holy! I dont know about you guys but I'm getting excited!!

dnburgess - I love your KISS strategy. Thats what I've been doing so far, but no luck really. Which is why I was beginning to get a little frustrated with the free criagslist blind email calling thing honestly. Thats why I was wondering whether I need to be getting a little bit more creative on the marketing side of things.

ask REO realtors to put you on thier email list if they have one

Can u subj2 REO deals? My thoughts are u cant really sub a deal thats been foreclosed on right? Or am I missing something here and this list has distressed home-owners who potentially can be helped? I'm trying to get subject-2 deals or other such creative financing methods. I've read up on this method of investing a ton, I'm pouring through Nick's ebook as well as we speak...

You don't need a webpage at first and even if you do want one there are companies like WebStarts that will give it to you free

this was an awesome tip! I didn't know about this. Now u know what I'm gonna be playing around with tomorrow during my 9-5...

Will - Thanks for the reply and the discussion!

All you need are deals (sellers) and buyers, but you do need to have a CPA and attorney already on your team before you start, otherwise, how do you know if you are giving the proper disclosures, using the proper language in contarcts, etc as well as finding the best way to legally avoid paying taxes?

I actually have most of the paper work from homestudy courses that I've taken. But my concern was the fact that Im currently in Michigan and the homestudy guru is from ga. Now most probably I would look to really quickly flip these deals once i find them (wholesale), definitely the first few. Would I need an attorney to go through the purchase and sales contract that I would use with the seller, keeping in mind the fact that I'm looking to assign the deal...

Awesome Will, thanks for being that straight-forward with that one. Got my first REI meeting today evening, hopefully I can come out of there after meeting someone whose done Subj2 deals here... At the minimum I'm gonna look for referrals for RE Attorneys, title companies and maybe some morgage brokers and RE agents to help with some marketing....

Gotta get my site setup and looking to start marketing myself out there

Originally posted by motiv8td

hey, are you calling me a 'guru'?? I hope not :(

I'm simply a 'practitioner' I'm always learning and improving.

There are so many things brought up in this thread it would be hard to respond to all of it.

If you have any specific questions directed towards me I certainly don't mind answering. I apologize for not noticing this thread until Steve pointed it out to me.

Haha, I'm definitely not calling u a guru, thats the first guys stuff that I've heard. Right now I'm actually reading yours, and so far I can tell u that I like your approach better. Makes it seem less sleezy is the best way i can put it. I havent gotten to the juicy bit yet about how u handle insurance with your subs and stuff, but will get there by the end of this weekend. You definitely have a write-up coming in the education section of BP! :)

Right now I was kinda getting an overload of stuff, which is what prompted the initial post. That lead to some really good advice from Jon, Will and a couple of others. Dont worry once I actually get some sellers, questions are coming your way!!! Right now its getting up and running...

Quick question though, for doing Subs is there any difference between closing at attorneys or title companies...??? Whom should I be looking to add to my team?

Nadirsh

Sorry this thread started to put me to sleep so if this was already addressed consider it an endorsement.

Get off being hung up on sub2, there can be 100 deals out there at the moment and only one sub2, so add a few more tools to your belt from the get go. Don't blow the other 99.